CTO – CREST Conference July 8th-11th 2014

Grenada

Loreto Duffy-Mayers

Regional Programme Manager

CHENACT -AP

ENERGY EFFICIENCY IN CARIBBEAN HOTELS

Objective of CHENACT

Caribbean Hotel Energy Efficiency and Renewable Energy Action

To improve the competitiveness of small and medium sized hotels (<400 rooms) in the Caribbean Region through improved use of energy with the emphasis on Energy Efficiency, Renewable Energy and Micro-Generation

The beneficiaries are CHTA member hotels

Overall Electricity Consumption by End-Use in Barbados and the Caribbean

Air Conditioning, 47.9%

Lighting, 11.5%

Guestroom Equipment,

7.4%

Kitchen & Refrigeration Equipment, 10.8%

General Equipment, 5.2%

Hot Water & Laundry, 5.6%

Pool Pumps, 7.6%

Other, 4.0%

Air Conditioning

Lighting

Guestroom Equipment

Kitchen & Refrigeration Equipment

General Equipment

Hot Water & Laundry

Pool Pumps

Other

Electricity Consumption and CO2e Emissions for the Barbados Hotel Sector

# of Rooms # of Hotels Annual electricity Consumption (MWh)

CO2 Emissions

(Tons)

<=50 60 20,711 14,606

51-100 18 18,450 13,012

101-200 14 26,102 18,408

>200 4 16,536 11,662

Total 96 81,799 57,688

Electricity Use Index – CHENACT Benchmarks

<=50 51-100 101-200 >200

High (kWh/Guest Night) 112 87 59 50

Average (kWh/Guest Night) 46 42 35 34

Low (kWh/Guest Night) 12 18 25 22

# of Hotels 16 12 8 4

GN/RN Ratio 1.88 1.88 1.94 2.05

Hotel Size (# of Guestrooms)

US$ 20 million investment in Barbados hotel clean energy will yield US$ 50 million in savings

(6.0) (5.4) (6.5)

(2.0)

22.8

19.0

22.8

5.9

16.8

13.6

16.3

3.9

-10

-5

0

5

10

15

20

25

Inve

stm

ent

and

Sav

ings

in M

illio

n U

S$

Initial Investment (Million US$) Energy Cost Saving (Million US$) Net Saving (Million US$)

Up to 50 Rooms 101-200 Rooms > 200 Rooms

Assumptions: Analysis period – 7 years, Discount rate – 12%, Average electricity tariff – 0.40 US$/kWh, Electricity annual price escalation rate – 4.5% for Barbados.

51-100 Rooms

WATER

The majority of hotels sustained water leaks which was costing them between 20-50% of their water bills.

This was due to: leaking toilets, faucets, underground pipes, cooling towers and pools.

The audit team found a leak at a large hotel which was costing them approximately $620,153.70/yr.

In a number of cases proper water consumption analysis could not be done due to water meters that were not functional.

Water Audit Findings

24 hour water audit results:

Detailed energy efficiency audits of various sized hotels showed savings potential of 20-30%, with payback periods of less than 5 years (depending upon the prevailing electricity tariffs). Assuming an average room rate of US$100, and electricity rates of $0.40/kWh, energy efficiency improvements would yield, over a 7 year period, the equivalent of:

3,800 room nights revenue for small hotel (<50 rooms), 7,500 room night revenue for a medium hotel (50-100 rooms) 16,300 room night revenue for large hotel (>100 rooms)

The net revenue (total savings minus investment), would be $280,000 for small hotel, $300,000 for medium hotel, and nearly $1 million for a large hotel over 7 years.

Overview of the Caribbean Hotel Sector

2,269 hotels in 25 countries/territories comprising 241,000 guestrooms

0

50

100

150

200

250

300

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

# o

f H

ote

ls

# o

f R

oo

ms

# of Rooms

# of Hotels

Hotel Sector Electricity Cost Share of GDP in the Caribbean

0.05%

0.31%

0.1% 0.1% 0.2%

0.5%

0.9% 0.9% 1.0% 1.0%1.2% 1.2% 1.2%

1.4%

1.7%

2.3%2.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Ho

tel S

ect

or

Ele

ctri

city

Co

st a

s %

of

GD

P

Hotel expenditures on electricity can represent more than 2% of total national GDP in smaller countries.

Annual CO2e Emissions Reduction – Caribbean Region Hotel Sector

0.8

2.1

2.2

3.3

3.9

5.4

5.8

6.0

7.8

9.9

14.6

14.5

15.5

16.2

18.5

19.1

19.9

23.8

36.2

36.2

51.0

53.5

96.3

170.3

251.5

0

50

100

150

200

250

300M

onts

err

at

Anguilla

Dom

inic

a

St

Vin

cent

/ th

e…

British V

irgin

Isla

nds

Haiti

Gre

nada

St

Kitts

/ N

evis

Berm

uda

Turk

s /

Caic

os I

sla

nds

Trinid

ad /

Tobago

Antigua /

Barb

uda

Caym

an I

sla

nds

St

Lucia

US V

irgin

Isla

nds

Mart

iniq

ue

Barb

ados

Aru

ba

Neth

erlands A

ntilles

Guadelo

upe

Puert

o R

ico

Baham

as

Jam

aic

a

Cuba

Dom

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an R

epublic

An

nu

al C

O2

Em

issio

ns R

ed

ucti

on

- in

1

,00

0 t

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s

884 thousand tons CO2e emissions can be avoided annually through EE actions

Desired Impacts of CHENACT

• Growth in the Caribbean clean energy industry (consultants, engineering companies, equipment suppliers/distributors, service providers) – tax revenue, employment

• Reduced operating costs for Caribbean hotels - expenditures on electricity (and water)

• Improved balance of trade for Caribbean through reduced imported energy resources – expenditures on oil imports

• Programmatic approach to reducing GHG emissions in the hotel sector as a example for other sectors

• Greater awareness of and appreciation for energy efficiency and renewable energy among hotel workers and the general public that can be employed in their homes

• Online Courses in EE and RE for Hotel Staff

Summary of Impact of CHENACT Recommendations

Barbados Hotel Sector

• 96 hotels and 6,114 hotel

• rooms

• $17 million total investment in energy efficiency >=

• $10 million annual savings

• 27 million kWh total annual savings

• 18,800 tons CO2e reduced annually

• 6,891kiloliters of diesel/HFO in reduced imports annually

Caribbean Region Hotel Sector

• 2,269 hotels; 241,058 hotel rooms

• $433 million total investment in energy efficiency

• $271 million annual savings

• 1,050 million kWh annual savings

• 835,000 tons CO2e reduced annually

• 267,970 kiloliters of diesel/HFO in reduced imports annually

CDM Program of Activities

• A Program of Activities (PoA) (often called Programmatic CDM) consists of multiple, similar smaller GHG emission reduction projects, each referred to as CDM Program Activities (CPAs).

• PoA is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary program).

• A PoA is characterized as: 1) a voluntary action, 2) implementing a policy, measure or stated goal, 3) coordinated by a public or private entity, 4) resulting in emission reductions or removals that are additional.

• One or more CPAs can be included under a PoA at the time of registration and additional CPAs can be added at any point in the life of the PoA.

• A PoA can involve CPAs being run in multiple countries, in which case a separate letter of approval would be required from each participating government Designated National Authority (DNA) involved.

Hotel Energy Efficiency CDM Program of Activities

Recommended technologies and services be included in the Hotel CDM PoA:

• Air conditioning retrofit - inverter type variable refrigerant volume mini-splits

• Guestroom energy controls – occupancy sensors, programmable thermostats

• Public area lighting controls – occupancy sensors

• Individual lamp replacement – compact fluorescent lamps (CFL) and LEDs

• Fluorescent tube lamps – T8 tube lamps with electronic ballasts and LEDs

• Solar hot water (SHW) heating systems

• Energy efficient freezers, refrigerators, cool rooms

• Guest room energy efficient mini-fridges, televisions

• Office and guestroom equipment – televisions, computer monitors

• Timers on pumps and motors

• Photo-sensors and timers for outdoor lighting

• Energy Management Systems

Loreto Duffy-Mayers CHENACT chenactproject@gmail.com (246) 2337849 Skype:loretoduffymayers

Thank you for your attention!